The return on plan assets component of pension expense for a defined benefit pension plan is

Question

Quizplus · Accepted Answer

The return on plan assets component of pension expense for a defined benefit pension plan is considered as the reduction in pension expense created by expected earnings of the plan. This is because pension expense calculation typically uses the expected return on plan assets to estimate the income generated by the assets set aside to pay future pensions, thereby reducing the overall expense recognized in the current period.

The Return on Plan Assets Component of Pension Expense for a Defined